NVIDIA (NVDA) Near Deal To Buy Arm From SoftBank (SFTBY) For Over $40 Billion: WSJ

By Amit Chowdhry ● September 12, 2020
  • NVIDIA Corporation (NASDAQ: NVDA) is reportedly nearing a deal to acquire British chipmaker Arm Holdings from SoftBank Group Corp (OTCMKTS: SFTBY) for over $40 billion, according to sources with The Wall Street Journal

NVIDIA Corporation (NASDAQ: NVDA) is reportedly nearing a deal to acquire British chipmaker Arm Holdings from SoftBank Group Corp (OTCMKTS: SFTBY) for over $40 billion, according to sources with The Wall Street Journal. If the deal goes through, then it would substantially increase NVIDIA’s market share in the chip industry.

The deal — which is believed to be in cash and stock — could be announced as early as next week. SoftBank acquired Arm for $32 billion about four years ago.

While NVIDIA has become a household name for its graphic chips, it has been moving more into providing chips for data centers, self-driving vehicles, and AI. And Arm is known for supplying the technology required for building chips for billions of mobile devices. Arm does not manufacture their own chips, but the company licenses the underlying technology and the company had previously worked with NVIDIA.

NVIDIA had announced last year that it would build chips with processors from Arm to build out supercomputers.

Disclosure: I own a small number of NVDA shares.